Setting Up Payee Control

This section provides an overview of payee control, lists the form that is used to set up payee control, and discusses how to set processing options for A/P Payee Control Server - Processing Options (X0450).

3.2.1 Understanding Payee Control

Payee control is an audit feature that helps to ensure that one person cannot commit and conceal an error or act of fraud of selected, critical payee information. When monitored changes are made, this feature holds payments to the payee pending review and approval of changed information. You use payee control to control changes that are made to selected, critical payee and bank account information. One person enters the change and another approves it. Thus, the involvement of two people is required to make changes that affect payments.

Until a change is approved, the system prevents automatic payments to a payee for whom controlled information has been changed. The program for creating payment groups bypasses payees that have unapproved payee control records and prints an error message on the edit report. The program for writing payments prints an error message if the payee's alpha name, mailing name, or SWIFT code changes are unapproved.

The system does not prevent you from writing manual payments if the controlled information has changed.

3.2.1.1 Limitations

Payee control does not eliminate all risk. It is intended for use in conjunction with management controls to prevent error and fraud. You must implement security for these elements of Payee Control:

■ The Payee Control (F0450) table.

Deleting this table disables the audit trail.

■ A/P Payee Control Server - Processing Options Only program.

Changing the processing options for this server affects the way that the system monitors changes.

Payee control. Set up the system for payee control to prevent users from performing fraudulent payment activities.

Payment instruments. Set up payment instruments and assign them to payment programs.

Print sequences. Set up print sequences for payments to specify the order in which payments print.

Set up payment information by business unit.

Set up payment information by business unit if you produce payments by business unit.

Prevent your company name from printing on payments.

Prevent the system from printing your company name if your preprinted checks already contain your company name.

Setting Up Payee Control

■ A/P Manual Payments program and Voucher Entry with Manual Payment

program.

You can write manual payments to payees for whom controlled information has been changed.

3.2.1.2 Setup

Setting up payee control consists of setting processing options for the A/P Payee Control Server - Processing Options Only program (X0450). Depending on how you set the processing options for the A/P Payee Control Server - Processing Options Only program, you can control changes, or additions and changes, to each of these fields:

When the system detects a change to a controlled field, it writes a record to the F0450 table. This record includes the original information, the changed information, the date Controlled Field Description

Alpha Name in the Address Book Master (F0101) table.

Changes to a payee's alpha name can divert the physical payment. The alpha name can be changed on the Address Book Revision form. Bank Account Number in the F0030 table. Changes to a payee's bank account number can

divert an electronic payment. The bank account number can be changed on the Set Up Bank Accounts By Address form.

Bank Transit Number in the Bank Transit Master (F0030) table.

Changes to a payee's bank transit number can divert an electronic payment. The bank transit number can be changed on the Set Up Bank Accounts By Address form.

Bank Account Type in the F0030 table. Changes to a payee's bank account type can divert an electronic payment. The bank account type can be changed on the Set Up Bank Accounts By Address form.

Mailing Name in the Address Book - Who's Who (F0111) table.

Changes to the payee's mailing name can divert the physical payment. The mailing name can be changed on the Address Book Revision and Who's Who forms.

Note: The Payee Control process detects changes only to the first Who's Who record (Line ID 0). Changes to any other Who's Who record are not written to the F0450 table.

Payee in the F0411 table. Changes to the voucher's payee can divert the payment while a voucher is being entered, or after. The payee can be changed on the Enter Voucher - Payment Information form, alternate voucher entry forms, and the Update Single Pay Item form (from the Speed Status Change program).

Special payee in the F0101 table. Changes to the supplier's special payee can divert a payment at the time a voucher is entered. The special payee can be changed on the Related Address tab of the Address Book Revisions form and on the Supplier Master Information form. SWIFT code in the F0030 table. Changes to a payee's SWIFT code can divert an

electronic payment. The SWIFT code can be changed on the Set Up Bank Accounts By Address form.

Setting Up Payee Control

and time that the change was made, and the user ID of the person who made the change.

For example, Universal Incorporated has a supplier number of 4344 and an alternate payee number of 3610. You add a voucher for supplier number 4344 and enter an alternate payee number of 5910. If you have the payee control feature activated, the system creates a payee control record because the voucher's payee number (5910) does not match the supplier number (4344) or alternate payee number (3610). This record must be approved by another person before payment can be issued.

3.2.2 Form Used to Set Up Payee Control

3.2.3 Setting Processing Options for A/P Payee Control Server - Processing Options

(X0450)

Processing options enable you to specify the default processing for programs and reports.

3.2.3.1 Levels

A/P Ledger (F0411): Payee

Specify the level of control that you want for each table. Enter 1 for changes only or 2 for adds and changes. If you leave this processing option blank, no control records are written.

Bank Accounts (F0030): Account, Transit, SWIFT Code

Specify the level of control that you want for each table. Enter 1 for changes only or 2 for adds and changes. If you leave this processing option blank, no control records are written.

Address Book (F0101): Alpha Name, Special Payee

Specify the level of control that you want for each table. Enter 1 for changes only or 2 for adds and changes. If you leave this processing option blank, no control records are written.

Who's Who (F0111): Mailing Name

Specify the level of control that you want for each table. Enter 1 for changes only or 2 for adds and changes. If you leave this processing option blank, no control records are written.

Note: ZJDE0001 is the only version that controls Payee Control.

See Also:

JD Edwards EnterpriseOne Tools System Administration Guide.

Form Name FormID Navigation Usage

Accounts Payable Constants

W0000E Accounts Payable Setup (G0441), Accounts Payable Constants On the System Setup form, select Accounts Payable Constants. On the Accounts Payable Constants form, select Payee Control from the Form menu.

Access the A/P Payee Control Server program.

Setting Up Payment Instruments and Print Programs

3.2.3.2 Option

Supplier Master Edit

Enter 1 to create payee control records regardless of whether a Supplier Master (F0401)